Masdar Capital, the private equity arm of the Abu Dhabi Future Energy Company (Masdar), has signed an agreement with the Development Bank of Japan to invest jointly in renewable energy projects.

A memorandum of understanding (MoU) was signed by the two parties at the World Future Energy Summit in Abu Dhabi on 16 January. The bodies will be equal partners in investments that will target the commissioning of solar and wind power projects. The investments will focus on schemes in North America and Europe.

Masdar Capital and Development Bank of Japan plan to commit significant capital to a platform that will target stable returns from investing in operating renewable energy assets. The platform will target the acquisition of minority equity investments in operational assets that will continue to be managed by third parties.

Initially, this platform will target onshore wind and photovoltaic (PV) solar assets in countries with relatively low sovereign risk. The partnership has already identified more than 1GW of operational solar and wind assets with the potential for investment.

“Given the lack of financing available to fund operational renewable energy projects, it is an opportune time to invest in projects that can provide stable returns to Masdar Capital and Development Bank of Japan,” said Masdar’s chief executive officer Sultan Ahmed al-Jaber.